Onboarding & KYB Product Updates: Q4 2023

To 2023, and Beyond

2023 was a year marked by both rising payment fraud - more than double that of 2021 - and increased regulatory scrutiny for banks and other FIs. As compliance rules changed and regulatory fines rose in Q4 2023, we released a Know Your Business (KYB) solution that solved the challenges like these that our customers were facing. We launched two solutions – Enigma Identity and Enigma KYB – to help our customers instantly verify more businesses and cut their KYB costs. 

And stay tuned as we continue to further FIs’ ability to onboard customers and combat fraud in 2024. 

Q4 2023 Updates

Enigma Launches Identity and KYB products

Enigma launched new Identity and KYB products in October 2023. With our KYB & Onboarding products, customers saw 1.5X higher instant verification rates compared to other providers and reached up to 80% saving in onboarding costs. We have over 100M business entities in our database and our match rates in Q4 2023 reached up to 90%.

We have already onboarded several new customers and workflow partners to this new KYB product offering. On top of supporting end-users who use our products to directly onboard their customers, we also inked partnership deals with orchestration platforms like Alloy, Oscilar, Taktile, and Trulioo to make integrating our data into your KYB process easier.

As part of the launch, we created a KYB endpoint built on top of a data asset featuring Secretary of State registrations as its core building block. This endpoint can also be used to call other data attributes for broader identity purposes, but we built the endpoint to maximize registration coverage and accuracy.

Enigma Identity vs. Enigma KYB Explained

In Q4, we launched both Enigma Identity and Enigma KYB. To help you figure out if either is a fit for your needs, we wanted to give you a quick primer on the varying use cases and features of the two products.

What is Enigma Identity?

You’d use Enigma Identity if your end goal is to simply verify the identity of a business before you engage in a transaction with them. Enigma Identity helps you answer if, a. “Is this business real and legitimate?” and b. “Can I be confident in doing business with this business?” 

You can use Enigma Identity to:

  • Make a decision on whether to engage in a business transaction
  • Make a decision on whether to offer a business trade credit
  • Make a decision on whether to use a supplier

The base data that you’d need to verify to quickly make decisions – and the data attributes we provide you with – include a business’ name, address, website, and whether or not they engage in a risky industry or activity.

What is Enigma KYB?

You’d use Enigma KYB, meanwhile, if your needs for verifying a business fall under KYB or AML compliance – e.g. if you’re a bank or other financial institution

You can use Enigma KYB to:

  • Gain confidence in the businesses you’re onboarding
  • Meet your KYB and AML compliance goals 
  • Protect against reputational risk

Scam alert? and are websites that exist, but if you run them through Enigma KYB you will find this business has virtually no other identifying information such as a verified name/address or corporate registrations.

Behind the Enigma Identity and KYB Curtain

To power Enigma Identity and Enigma KYB, we also developed new data attributes. In Q4 alone, we launched:

  • Name Verification of legal name as well as “doing business as” (DBA): An essential aspect of the due diligence process involves identifying and verifying both the legal name and any DBAs associated with a business. This is crucial because a business might interact with you using its DBA rather than its legal name. When seeking vital information about a business, such as its corporate registration, it is typically filed under the entity's legal name.
  • Address Verification of legal address as well as operating address: Verifying the legal address and operating locations of a business can impact various decisions during the due diligence process. Compliance, underwriting, and other financial decisions often necessitate a comprehensive understanding of a business's physical presence.
  • Website identification: Websites play a crucial role not only in confirming the legitimacy of a business but also as valuable sources of information regarding the business and its industry.
  • Identify industry and risky activities: Know if the businesses you’re onboarding operate or sell in risky industries such as cannabis, multi-level marketing, or firearms. 
  • Corporate registration filings with the Secretary of State (only in Enigma KYB): Know if the businesses you’re onboarding have a registration filing with the Secretary of State that is active and in good standing. Registration information can help determine businesses are legitimate, while complying with KYB regulations.
  • OFAC watchlist screening for people and businesses (only in Enigma KYB): Mitigate against the financial and legal risks of associating with sanctioned entities and ensure compliance.

And that’s only the start. With high coverage of basic firmographic and registration data, any customer can now get to “knowing” the businesses they work with. Over the coming months, we’ll be reaching for the “beyond”, by which we mean holistic merchant risk, fraud, and more, by exploring how our proprietary transactions data can provide unique insight into chargebacks, corporate hierarchies, operating status, and more.

Want to learn more?

Current customers can reach out to their CS representatives with questions and feedback. If you’re new to Enigma and interested in our KYB products, please get in touch.

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